1 Unprofitable Stock with Exciting Potential and 2 We Ignore
Running at a loss can be a red flag. Many of these businesses face mounting challenges as competition increases and funding becomes harder to secure.
Finding the right unprofitable companies is difficult, which is why we started StockStory - to help you navigate the market. That said, here is one unprofitable company with the potential to become an industry leader and two best left off your radar.
Two Stocks to Sell:
fuboTV (FUBO)
Trailing 12-Month GAAP Operating Margin: -2%
Originally launched as a soccer streaming platform, fuboTV (NYSE:FUBO) is a video streaming service specializing in live sports, news, and entertainment content.
Why Do We Avoid FUBO?
- Lackluster 21.2% annual revenue growth over the last two years indicates the company is losing ground to competitors
- Suboptimal cost structure is highlighted by its history of operating margin losses
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
fuboTV’s stock price of $10.81 implies a valuation ratio of 20.5x forward P/E. If you’re considering FUBO for your portfolio, see our FREE research report to learn more.
Atlas Energy Solutions (AESI)
Trailing 12-Month GAAP Operating Margin: -5.5%
Building the world's first long-haul proppant conveyor system to reduce truck traffic, Atlas Energy Solutions (NYSE:AESI) mines and processes sand used as proppant to prop open fractures in oil and gas wells during hydraulic fracturing.
Why Should You Sell AESI?
- Modest revenue base of $1.06 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Efficiency has decreased over the last five years as its EBITDA margin fell by 29.6 percentage points
- Cash-burning history makes us doubt the long-term viability of its business model
At $18.34 per share, Atlas Energy Solutions trades at 11.9x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including AESI in your portfolio.
One Stock to Watch:
StepStone Group (STEP)
Trailing 12-Month GAAP Operating Margin: -77%
Operating as both an advisor and asset manager with over $100 billion in assets under management, StepStone Group (NASDAQ:STEP) is an investment firm that provides clients with access to private market investments across private equity, real estate, private debt, and infrastructure.
Why Is STEP Interesting?
- Market share has increased this cycle as its 43% annual revenue growth over the last two years was exceptional
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 41.7% annually
StepStone Group is trading at $54.20 per share, or 22.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum - both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks - FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
